On a broad level, there are two key drivers of raw materials costs. The first is the primary feedstock. The primary feedstock for most coatings raw materials is oil and natural gas. There are others that can drive specific costs too, like certain metals for pigments. But by and large, the key driver of raw material costs is the price of oil and natural gas, with oil being the primary driver. Over the last five years, the price of oil has varied quite a bit. The average oil price was $97.98 per barrel in 2013. It dropped to an average price of $48.66 in 2015, then dropped further to an average of $43.29 per barrel in 2016. It has since rebounded to an average of over $49 per barrel in 2017. The increase in 2017 equates to a 14 percent increase over 2016 prices, which resulted in some raw material price inflation in the coatings markets.
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